Hi Petya, DSCR loans are extremely polular with investors in the Detroit market.

Achieving immediate positive cash flow indicates a successful execution, and the lesson learned about closely managing startup costs is vital for any investor.It’s also great to hear about professionals like Midge Maguire who have significantly contributed to your success.

And the 30% ratio does not work well in extremely low income area, you need to assess closer to 20 or 25% of income. 

That is extreme.

Tenanted properties are extremely challenging to sell and the recent change in notice period has made that worse in BC.You are in a tough spot either way, only you know your financial situation and your numbers.

And the price to enter is extremely low compared to other markets in the U.S

Education is extremely important. 

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

Overall we have vastly more “good” tenants, and the law allows you to get rid of the bad tenants and maintain a desirable place to live for the good tenants who you want to keep.High-maintenance <=> High-Return: Those prior two points drive what I meant when I said the cash flows and NOI should be about double what they are on a “vanilla” MF (multi-family) purchase at the same price point, but it can be a high-maintenance proposition to manage the screening on the front end, the day-to-day management issues, the more frequent turnover and vacancies, and the frequency of needed court filings to get the keys back from a tenant when somebody is not being a good neighbor to your other tenants in the lodging house.Bottom line: We think we were right on point five years ago when we identified that SROs fill a critical niche that is in extremely high demand.

Finally, **transparency and trust** are vital; a lender who is upfront about all costs and willing to work through challenges builds long-term relationships with investors.